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2018 Supreme(MP) 453
IN THE HIGH COURT OF MADHYA PRADESH AT INDORE
VIRENDER SINGH, S.C. SHARMA, JJ.
Siddhi Vinayak & Another - Petitioners
Versus
Union of India & Others - Respondents
Writ Petition No. 21438 of 2018
Decided On : 25-10-2018
Advocate Appeared:
For the Petitioners: Shri Piyush Mathur, Shri M.S. Dwivedi
For the Respondents: Shri Prasanna Prasad
The government has the power to regulate foreign trade in the interest of the general public.
Headnote:
Writ petition challenging the validity of notifications issued by the Government of India restricting the import of peas. The petitioner, a partnership firm engaged in the import-export of agricultural produce, contended that the notifications were issued without authority and were arbitrary and discriminatory. The respondents, the Union of India and the Director General of Foreign Trade, argued that the restrictions were imposed to protect the interests of domestic farmers and were a reasonable exercise of the government's power to regulate foreign trade.
Fact of the Case:
The petitioner, a partnership firm engaged in the import-export of agricultural produce, challenged the validity of notifications issued by the Government of India restricting the import of peas. The petitioner contended that the notifications were issued without authority and were arbitrary and discriminatory. The respondents, the Union of India and the Director General of Foreign Trade, argued that the restrictions were imposed to protect the interests of domestic farmers and were a reasonable exercise of the government's power to regulate foreign trade.
Finding of the Court:
The court held that the restrictions imposed by the government were justified and did not violate the petitioner's fundamental rights. The court found that the government had acted in the interest of the general public and that the restrictions were proportionate to the objective of protecting domestic farmers.
Issues: 1. Whether the notifications issued by the Government of India restricting the import of peas were valid.
Ratio Decidendi: The court held that the restrictions imposed by the government were justified and did not violate the petitioner's fundamental rights. The court found that the government had acted in the interest of the general public and that the restrictions were proportionate to the objective of protecting domestic farmers.
Final Decision: The court dismissed the petition.
1. The petitioner before this Court has filed present petition being aggrieved by the order dated 30/08/2018 passed by the Director General of Foreign Trade, New Delhi by which a restriction has been placed upon importing chickpeas.
2. The petitioner's contention is that the petitioner is a Partnership Firm registered under the provisions of Indian Partnership Act and has authorized petitioner No.2 to file the present writ petition. The petitioner Firm is engaged in the business of Import – Export of agriculture produce and other commodities from International Market and a certificate to that effect has been filed by the petitioner Firm issued by Ministry of Commerce and Industry.
3. The petitioners have further stated that as per the provision as contained in Section 5 of the Foreign Trade (Development and Regulation) Act, 1992, the power has been conferred upon Central Government to frame a Export Import Policy (EXIM Policy) and consequently a policy has been framed by the Central Government known as Foreign Trade Policy, 2015-2020 in which Exim Code No.0713 10 00, Item Description – Peas finds place in the category of Free Trade.
4. The petitioners have also stated that the petitioner Firm is engaged in the business of import of Peas since 2014 and has entered into some contract for import of Yellow Peas by executing agreements on the agreed terms and conditions between the parties by depositing part payment in the bank account of seller for supply of Yellow Peas through International Banking System/Channel between 20/03/2018 to 19/04/2018 as per prevailing Exim Policy. The petitioner Firm has entered into as many as eleven contracts.
5. The petitioner Firm has further stated that the respondent No.2 Director General of Foreign Trade has changed the Import Policy for Yellow Peas for which the respondent No.2 has issued a notification dated 25/04/2018 and has amended the policy regarding Import of Yellow Peas bearing Exim Code No.0713 10 00 from free trade to restricted by giving it retrospective effect i.e. w.e.f. 01/04/2018 to 30/06/2018. Learned counsel has further stated that by virtue of aforesaid notification, the Import Policy for Yellow Peas under Exim Code 0713 10 00 is revised from “free” to “restricted” for a period of three month only.
6. The petitioners have further stated that as per the notification dated 25/04/2018, two conditions were imposed, first that the quantity of Yellow Peas will not be extended from One Lakh metric ton and secondly the permissible mode of payment will include advance part payment through banking channel and only on fulfillment of the aforesaid conditions, persons were permitted to import Yellow Peas. The petitioner has further stated that by virtue of notification issued by the respondent No.2, the petitioner Firm was also eligible to register with the Officers of the DGFT as the petitioner Firm has already entered into the contract for import of Yellow Peas prior to issuance of notification dated 25/04/2018.
7. The petitioner Firm has thereafter, made a request to respondent No.4 for registration of transactions for import of Yellow Peas by submitting an application on 26/04/2018, requesting the registration of contracts and again submitted an application on 03/05/2018 furnishing all minute details of transactions as well as mode of payment of account along with relevant documents. The petitioner Firm has further stated that transactions entered into by the petitioner were genuine transactions and the petitioner Firm has obtained Import Licence and has paid requisite fees for the same.
8. The petitioner has further stated that another trade notice dated 09/05/2018 was issued directing implementation of notification dated 25/04/2018 and also directing the members of trade to provide information with respect of contracts for import of Peas along with all requisite information and to supply supporting documents on or before 18/05/2018 enabling the Directorate to lay down furth
